The market reaction to international cross-listings: evidence from Depositary Receipts

This paper examines the stock price impact of international dual listings. The sample consists of 181 firms from 35 countries that instituted their fi rst Depositary Receipt program over the period 1985-1995. The market reacti on to a Depositary Receipt program is larger in magnitude and more pervasiv e than previously reported. The stock price reaction is related to choice o f exchange, geographical location (i.e., emerging or developed markets), an d avenues for raising equity capital (i.e., public versus private offerings ), (C) 1999 Elsevier Science S.A. All rights reserved.